I'd like to point out that we'll probably end up having around 20 to even 40 badges at the most once we make all of them... well ideally I'd like them to be that many. Also, there are certain badges which will probably be award multiple times (at least we're talking about that as a possibility)... I think people shouldn't really be concerned about things like the 10 year badge replacing the normal veteran badge. Once we get the system running at 100% all of these seemingly big issues aren't going to seem important anymore.
Also, we're also planning on having some badges where members can nominate other members to get this badge... and provide evidence as to why they should get that badge. I think that should alleviate some fears people may have about it being about who sucks up to the moderators.